Back on the rodeo, selling in Brisbane.

Discussion in 'Investor Stories & Showcase' started by Sackie, 12th May, 2021.

Join Australia's most dynamic and respected property investment community
  1. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    I can't comment either way because this asset affects more than its self. Will comment when the fat lady sings ;)

    Or when the curvy they sings, as some PC folks may say:D
     
    Last edited: 6th Jun, 2021
    Firefly99 and Mulianto like this.
  2. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Well Holy moly!

    This has certainly been one massively interesting sale with twists and turns that would give John Grisham a run for his money. Ok, a little exaggerated. But definitely a new one for me.

    And sorry cant give any details until the fat lady has finished singing and the concert hall is all clear. :D
     
  3. Firefly99

    Firefly99 Well-Known Member

    Joined:
    24th Jul, 2020
    Posts:
    1,727
    Location:
    Qld
    Keeping us in suspense!!
     
    craigc and Sackie like this.
  4. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Update: I may have some news soooon. Just sayin.:D
     
    Westminster, Firefly99 and standtall like this.
  5. MWI

    MWI Well-Known Member

    Joined:
    17th Jul, 2017
    Posts:
    2,287
    Location:
    Lower North Sydney NSW
    BRI inner market continues to rise! IMHO great time to offload some cash if required for other ventures.
     
    Sackie likes this.
  6. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Sooooo close....1 phone call away tonight..

    Everyone cross fingers and toes pls!!
     
  7. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    6,175
    Location:
    Australia
    With all this selling, will you have any IPs left?
     
  8. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Last time I checked I should ;)
     
  9. MWI

    MWI Well-Known Member

    Joined:
    17th Jul, 2017
    Posts:
    2,287
    Location:
    Lower North Sydney NSW
    upload_2021-6-24_19-10-52.jpeg
    [​IMG]
     
    Sackie and Firefly99 like this.
  10. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Sold!!!!!:D:D:D:D:D


    I can't give any details just yet. :oops:
     
    Last edited: 24th Jun, 2021
    MWI and standtall like this.
  11. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    UPDATE:

    OK, so i can finally give some details now of this story. Its too long and boring so I'll do it in point form.

    - Property tenanted, 2 males and 1 female.
    - Sought permission for OFIs and granted. Paid tenants for allowing it as they don't have to.
    - OFIs lasted 3 weeks before auction. Tenants were OK with it but getting a little annoyed (even though they signed an agreement and i paid them)
    - Auction day, good turnout. Tenants also attended. I set the reserve 50k above what I thought was a good price as I didn't want to be locked into the sale from passing the reserve and not hitting my price where I'd be more than happy to sell. Its a strategic move and suited my needs/goals/risk tolerance. Not recommending it.
    - Auction bidding started off slowly
    - Auctioneer started to put pressure, going once, twice etc.
    - bids started to increase in good amounts.
    - eventually we reached a point where buyers present were at a price which was definitely good, but not high enough for me to sell. If I set my reserve a little lower, the choice not to sell would have been taken away from me.
    - I decided to pass in and negotiate after.
    - Tenants saw auction, became ****** I didn't sell (they thought it was a good price) and then all hell broke loose.
    - They wouldn't allow any more OFIs (even though contractually agreed AND paid)
    - They would lock the door when agents would bring people though. To say i was furious was an understatement.
    - Tenants would try to wait for buyers outside the house and badmouth the property.
    - tenants demanded a lot more money to allow OFIs. I told them where to go.
    - agent tried his best to work with the tenants. They didn't want a bar of it.
    - QCAT formal complaint was going to be launched.
    - Tenants sent a million emails back and forth to agent, PM etc. All Angry that we are invading their time with OFIs, even though they agreed to it , signed a form AND i paid them.
    - We even asked them to just allow 1, 30 min OFI a week. that's all. They refused.
    - Tenants eventually begrudgingly lets agent through to show buyers. Only 1 buyer at a time.. didn't allow groups. lol A...holes.
    - 2 more weeks of this.
    - Finally, agent brings me an offer I like
    - After more negotiating back and forth.
    - We settled on a price, 55k higher than the highest bid at auction. Tenants will probably have a heart attack when they find out.

    O' Happy days. Oooo happy days.

    Oh, and the tenant's lease (which I know they desperately want renewed) is coming up in just over 2 months.

    Karma is a *****.
    :)
     
    Last edited: 28th Jun, 2021
    craigc, MWI, Westminster and 3 others like this.
  12. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    "Oh, and the tenant's lease (which I know they desperately want renewed) is coming up in just over 2 months."

    Let me guess: Fair market value rent in 2021 will be significantly higher than what they have been paying.
     
  13. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    actually getting good rent.
     
  14. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    You dodged a bullet, I have had a few shocking tenants in my time.

    Good-riddens:mad:
     
    Sackie likes this.
  15. gman65

    gman65 Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,802
    Location:
    Brisbane
    Why didn't you just offer a couple of $k for them to move out early, and avoid all the angst?

    Sure, they could have rejected it and waited out the 2 months, but end if the day, more than likely they'll have to move out at the end of the tenancy anyway, so at least they would have got something in exchange for leaving early.
     
    Mulianto likes this.
  16. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    We tried and they didn't want to. They were happy for us to show it in the beginning, hence we signed the agreement and paid them a nice fee. No issues. They got bitter and entitled half way through when they saw the offers at auction. At that point it's silly to stop the sale and wait for them to move out.

    They changed their tune in the middle of the campaign. They didn't keep their word, even though they were initially happy to and take my money and sign a contract.

    In the end it's worked out well for us.
     
    gman65 likes this.
  17. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,934
    Location:
    Brisbane
    I'm curious to know what money you paid them for their cooperation with the sale campaign.

    We did this with a tenant once, final four weeks rent-free, which worked well for both parties. That was about $600 per week from memory.
     
  18. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    We paid them a cash fee of 2k plus 20% reduction in rent for the campaign.

    Half way though they wanted 10k more plus 10% more reduction.

    I basically said see you in court.

    That's when they softened.

    They are stupid. I would have extended the lease which they desperately want and my pm even told them I would. But they chose to try and make my life difficult.

    Hope they enjoy packing.
     
    Last edited: 28th Jun, 2021
    craigc, Piston_Broke and wylie like this.
  19. Piston_Broke

    Piston_Broke Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    4,081
    Location:
    Margaritaville
    I'm curious as to how long you've owned the IPs you been selling.
    Not exact, just sat over 10yrs, 15 or 20.
     
  20. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    These two I've owned for about 6 years. Gross profit just under 1mil. Was a BnH site, then developed.
     
    Piston_Broke and MTR like this.

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia